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Banks Too Big to Fail, Too Big to Bail Out: Roubini

Posted By admin On July 6, 2010 @ 8:49 am In Money Watch | Comments Disabled

CNBC.com [1]
July 6, 2010

European governments face the quandary of being unable to afford to bail out banks that are still considered too big to fail, while the global economy is heading for a slowdown in the second half of the year, economist Nouriel Roubini of Roubini Global Economics told CNBC Tuesday.

Governments are running out of ways to counter a “massive slowdown” or the risk of a double-dip recession, Roubini said.

“A year ago we had all these policy bullets,” he said. “We could push down rates to zero, we had (quantitative easing), we could do a budget deficit of 10 percent of GDP (or) backstop the financial system.”

“Banks at this point are too big to fail, but also too big to be bailed, especially in Europe where the sovereigns are in trouble and therefore the ability to backstop the financial system is not there,” he said.

Full article here [1]

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URLs in this post:

[1] CNBC.com: http://www.cnbc.com/id/38102194

[2] Image: http://www.homegain.com/housead/homes_for_sale/index?entryid=11502

[3] More than 400 US Banks Will Fail: Roubini: http://www.prisonplanet.com/more-than-400-us-banks-will-fail-roubini.html

[4] Roubini: My ‘Perfect Storm’ Scenario Is Unfolding Now: http://www.prisonplanet.com/roubini-my-perfect-storm-scenario-is-unfolding-now.html

[5] Big Banks Craft ‘Living Wills’ In Case They Fail: http://www.prisonplanet.com/big-banks-craft-living-wills-in-case-they-fail.html

[6] Double-Dip Recession Still in the Picture: Roubini: http://www.prisonplanet.com/double-dip-recession-still-in-the-picture-roubini.html

[7] ROUBINI: The Recession Is Guaranteed, The Only Question Now Is How Bad It Will Be: http://www.prisonplanet.com/roubini-the-recession-is-guaranteed-the-only-question-now-is-how-bad-it-will-be.html

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